KB Home, Countrywide Ran $2.8B Fraud: Homebuyers

Law360, New York (May 8, 2009, 12:00 AM EDT) -- A putative class of California, Arizona and Nevada homeowners has accused housing giant KB Home and Countrywide Financial Corp. of joining forces in a racketeering enterprise, using tainted appraisals on houses KB Home sold and loans Countrywide provided to inflate contract values by $2.8 billion.

The complaint, filed Thursday in the U.S. District Court for the District of Arizona, accuses KB Home, Countrywide and Countrywide appraisal subsidiary LandSafe Inc. of violating the Racketeer Influenced and Corrupt Organizations Act and California unfair competition law in an ongoing...
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